Ripple Backs SEC Crypto Rules as Chainlink, Hedera and 4 Networks Demand Binding Digital Commodity Definitions

Ripple has filed a comment letter supporting the US Securities and Exchange Commission’s proposed Regulation Crypto Assets, adding its voice to a growing debate over how digital assets should be regulated. Ripple argues that the SEC has clear authority to adopt the proposal and that comprehensive rules could replace years of uncertainty driven by enforcement actions against individual crypto projects.

The submission comes as six blockchain organizations, including Chainlink Labs, Hedera, Aptos Labs, Ava Labs, the Cardano Foundation and the Stellar Development Foundation, separately urge the SEC to strengthen its proposed framework. Their request focuses on putting the definition of a “Digital Commodity” directly into binding regulatory text rather than leaving it in the proposal’s preamble.

Together, the submissions highlight a shared industry demand for greater regulatory predictability, although the companies are emphasizing different parts of the SEC’s framework. Ripple supports the broader proposal, while the six organizations want a more durable legal foundation for the digital commodity classification.

Ripple Challenges the Cost of Crypto Regulatory Uncertainty

In its comment letter, Ripple criticizes years of what it describes as “case by case, coin by coin” enforcement. The company argues that this approach has pushed innovation offshore and that the US needs a comprehensive regulatory framework for digital assets rather than relying on individual disputes to establish how the law applies.

Ripple says the proposal remains consistent with the Supreme Court’s Howey test, the longstanding legal standard used to determine whether an arrangement constitutes an investment contract. Its position is that the investment contract is the security, not automatically the underlying token. The relevant questions, according to Ripple, concern the promises an issuer actually made and when those promises end.

That argument challenges the use of a subjective decentralization test as the deciding factor in determining an asset’s regulatory status. Ripple instead emphasizes the specific commitments and circumstances surrounding an offering. The distinction could have implications for token issuers seeking to understand when securities-related obligations apply and when they may no longer be relevant.

Ripple also pointed to its own legal battle as evidence of the cost of uncertainty. The company says it spent more than $150 million pursuing clarity over the application of US securities law to its business and XRP. It argues that companies should not have to spend comparable sums in litigation simply to understand their legal obligations.

The company believes clearer rules could encourage investment, improve investor protection and help keep more digital-asset development in the United States. However, the proposal’s ultimate impact will depend on the final language adopted by the SEC and how the agency applies it to different assets and transactions.

Six Blockchain Networks Seek Stronger Digital Commodity Rules

The separate coalition letter from Chainlink Labs, Hedera, Aptos Labs, Ava Labs, the Cardano Foundation and the Stellar Development Foundation addresses a specific concern: the placement of the SEC’s digital commodity definition. According to reporting by Genfinity, the organizations want the definition and its non-security status incorporated into the operative text of the rule, rather than appearing only in explanatory material.

The distinction matters because a preamble explains an agency’s reasoning but does not carry the same force as the binding provisions of a final rule. Incorporating the definition into the rule text could make future changes subject to a more formal regulatory process, offering businesses greater stability when planning development and investment.

The SEC and Commodity Futures Trading Commission issued a joint interpretation on March 17, 2026, establishing categories for digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The framework identifies examples of assets associated with CFTC-regulated futures markets, including APT, AVAX, ADA, LINK, HBAR and XLM. Yet the classification of an asset does not automatically mean every transaction involving it falls outside securities law.

The SEC’s proposed Regulation Crypto Assets, introduced in August, also addresses token offerings through mechanisms that include a conditional safe harbor and fundraising exemptions. Meanwhile, broader congressional efforts to establish a statutory division of authority between the SEC and CFTC have faced delays.

Ripple’s support and the six organizations’ request reflect a common concern that unclear rules can raise costs and discourage US development. Their approaches are not identical: Ripple endorses the proposal’s overall direction, while the coalition seeks a specific change to its text. The SEC’s response to the public comments will help determine whether the final framework provides the lasting certainty these companies say the industry needs.

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